NAFTA Replacement Excludes Canada

Trump admin focused on Mexico for current deal

The Trump administration announced a deal Monday with Mexico to update the North American Free Trade Agreement to force auto manufacturers to source more parts from North America, among other changes.

The deal did not involve NAFTA’s third partner, Canada, and President Trump said his preference was to now cut a separate trade agreement with Canada that would “terminate” the existing NAFTA framework and instead replace it with two bilateral trade deals.

“It’s a big day for trade,” Trump said at an Oval Office announcement. “It’s a big day for our country.”